By: Matt DeSarno, CEO, Verfico
How Gilbane uses innovative technology to manage risk and enhance project efficiency.
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CHALLENGE
In the highly competitive landscape of the construction industry, Gilbane stands out not just for its excellence in project execution but also for its unwavering commitment to the safety and well-being of workers. Recognizing the pervasive challenge of wage theft鈥攃osting workers an estimated $50 billion annually鈥擥ilbane confronted a pivotal challenge: ensuring wage compliance while maintaining their competitive edge as an industry leader. Wage theft is particularly rampant in construction due to multitiered labor environments and a lack of transparency. Regulators are heightening legal scrutiny and enforcing stricter penalties to address the escalating problem within the construction industry. Wage theft posed both a legal and reputational risk to Gilbane, threatening the foundation of trust and ethical standing the organization had worked tirelessly to build with workers and owners alike.
SOLUTION
Gilbane鈥檚 response to this challenge was both strategic and visionary: the implementation of Verfico technology. Verfico鈥檚 cutting-edge solution enabled unparalleled transparency and compliance, capturing worker log data and reconciling it against payroll information to guarantee fair compensation. This proactive approach provided real-time insights into potential discrepancies, significantly reducing wage assurance risk and the costs associated with litigation.听
鈥淭he Verfico and Gilbane partnership enables us to deliver the type of innovative and transformational programs that represent our core company values. It allows us to proactively navigate the complexities of labor compliance while solidifying our commitment to ethical practices and making a positive impact in the communities we serve.鈥�
KELLY BENEDICT
Vice President, Head of Innovation & Transformation, Gilbane
Verfico has the potential to help Gilbane improve efficiency in three key areas:
Litigation Costs
In 2023, wage theft cases brought by the Washington, D.C., attorney general had an average settlement cost exceeding $600,000. With legal fees often reaching hundreds of thousands of dollars, coupled with reputational damage leading to lost business opportunities, total costs can escalate to millions.
Workforce Costs
Project teams currently dedicate considerable time to manual reports and data entry, prone to errors and fraud. Verfico enhances data accuracy by directly linking daily reports to worker logs, saving supervisors and forepersons 15 to 30 minutes daily, equating to over 350 work hours on a yearlong project.
Project Costs
Project delays incur significant financial losses for general contractors annually. Verfico鈥檚 data alerts project teams to worker shortages in real time, preventing costly delays.听